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Iberian clothing sales to dip 3.5% this year: DBK Report
Oct '13
The total clothing sales in the Iberian market, which includes Spain and Portugal, is expected to decline by about 3.5 percent year-on-year to €20.200 billion, according to a study recently published by DBK, a subsidiary of Informa D & B (Group CESCE).
The study says that apparel revenues in Spain would decrease by 3 percent to €16.850 billion, while there would be a dip of 5 percent in Portugal.
According to DBK, the value of clothing retail sales in the Iberian market fell to €20.935 billion in 2012, down 3.6 percent year-on-year. Of these, sales in Spain stood at €17.400 billion, down 3.1 percent, while sales in Portugal were €3.535 billion, down 6.2 percent.
The fall in retail clothing sales in Spain and Portugal last year was due to a decrease in consumption of households, the drop in prices resulting from the implementation of promotions and discounts by retail stores, and the growing demand for low-priced products.
The sales of clothing products from department stores, hypermarkets and supermarkets recorded a decline of 4.2 percent in 2012.
However, specialized chains benefited from the gradual change in the buying habits and their greater ability to offer innovative products at lower prices. But, these chains too witnessed a drop of 2 percent in their revenues last year.
The decline in household spending, associated with the high level of unemployment and economic uncertainty, continue penalizing sales in the short-term, both in Spain and Portugal, says the study.
In late 2012, nearly 75,000 points of sale specialized in clothing retail were operating in the Iberian market, of which, 80 percent were located in Spain and the remaining 20 percent were in Portugal.
Catalonia, Andalusia and Madrid account for almost half of the total number of clothing retail establishments in Spain, whereas in Portugal the largest number of apparel retail stores are located in the northern zone.

Fibre2fashion News Desk - India

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